A Broadbridge report examines the impact that artificial intelligence (AI), cloud computing and distributor ledger (DL) technology will have in driving new revenue and cost saving opportunities for capital market firms.
The report Pathways to Profit: Leveraging Next Generation Technology to Drive Profitable Growth, found that financial institutions are concerned they don’t have expertise and sufficient resources to realise the full potential of the above capabilities.
Top priorities of capital market firms and their biggest pain points was revealed by the report, with financial institutions feeling challenged to invest and find expertise to help realise the full potential of AI, DL and cloud computing.
‘Collaborating with industry partners’
The report also found utilising the scale of Fintech partners to effectively deploy AI, machine learning, and robotics, and collaborating with industry partners who can create new networks, could bring value to all surveyed participants.
Tim Gokey, president and chief operating officer of Broadridge, said: “While banks are poised to benefit from rising interest rates, stronger economic conditions, growing profits, buoyant stock markets and leading firms are establishing partnerships with technology specialists to enhance their operational infrastructure and secure their future.
‘Unique business offerings’
“These Fintech providers offer an important resource to banks, providing knowledge in areas where these institutions are resource constrained and enabling them to focus on ways to augment their own unique business offerings.”
The report concludes capital markets firms are adopting cloud technology at a different pace, depending on their business, and a better understanding of internal customer data for capital markets firms will improve marketing and sales opportunities, as well as client experience.
Key executives at 69 capital markets firms were surveyed, in a bid to learn more about their strategies to grow revenues and improve efficiency.
Written by Leah Alger